The oil and gas market has seen a surge in demand for both oil and natural gas, which has led to multi-year record highs. Although oil prices fell due to concerns about the Omicron Coronavirus variant of the virus, analysts anticipate that prices will reach $100 per barrel. Therefore, it could be wise to buy the dip in oil & gas stocks such as China Petroleum & Chemical (NYSE:), APA Corp. (APA), SilverBow (SBOW), VAALCO, and EGG (EGY). This year saw multi-year record oil and gas price rises. Oil prices increased by more than half this year due to rising demand. This was despite countries being freed from travel restrictions and lockdowns last year. To lower prices, President Biden declared that 50 million barrels would be released by the federal government from its strategic oil reserve. Analysts believe that the strategy will not have the desired results and could cause prices to rise as high as $100 per barrel.

According to JPMorgan Chase & Co. (NYSE:) analysts, prices can reach $120 per barrel in 2022 and $150 per barrel in 2023, with the OPEC+ cartel keeping a tight supply. The drop in oil prices recently is due to worries about the omicron coronavirus and will likely be temporary.

Therefore, it could be wise to buy the dip in the fundamentally strong oil and gas stocks China Petroleum & Chemical Corporation (SNP), APA Corporation (APA), SilverBow Resources, Inc. (NYSE:), and VAALCO Energy, Inc. (EGY).

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