Investing.com - U.S. natural gas prices slipped lower Wednesday, falling back from its highest levels since December 2022, reached on the back of continued cold weather and low reserve levels.

At 09:15 ET (14:15 GMT), natural gas prices fell 0.6% to $4.321 per million British thermal units, or MMBtu.

Wintery conditions in North America as well as reports that U.S. natural gas reserves are down about 12% from where they normally are this time of year are proving support.

That said, the clocks move forward in about five days in the United States and although there could be the occasional cold blast between now and the end of winter, coming in just a few weeks, the warmer weather is coming.

This comes as trade tariffs imposed by the Trump administration on Canada could see a major disruption of gas supply into the U.S.

In 2022, about 99 per cent of the U.S.’s total annual natural gas imports were from Canada, and nearly all were by pipeline. Its imports of natural gas from Canada help support fluctuating supply in the U.S. during the winter months.

In an attempt to alleviate this supply choke point, South Korea and the United States have agreed to establish a working-level group to discuss a gas pipeline project in Alaska, energy, shipbuilding, tariffs and non-tariff barriers, South Korea’s Industry Minister Ahn Duk-geun said on Tuesday.

The European gas market is bracing for further volatility as it enters the crucial summer restocking period.

EU storage sites entered March 38% full, well below the 62% level registered in the year-earlier period.

“The European natural gas market sold off yesterday,” said analysts at ING, in a note. “We believe that the weakness is overdone given the tighter storage environment. Also, European prices need to stay elevated and at a premium to Asia to ensure the region brings in enough LNG through the injection season.”