Investing.com - U.S. natural gas prices fell Thursday, dropping from record levels as spring conditions approach and amid talk of a hefty increase in U.S. supply.

At 09:30 ET (14:30 GMT), natural gas prices fell 1.8% to $4.368 per million British thermal units, or MMBtu, after earlier this week climbing to its highest levels since December 2022.

Prices have been at record levels due to the wintery conditions, but the clocks move forward in about five days in the United States, usually a sign warmer weather is coming.

This comes after trade tariffs imposed by the Trump administration on Canada could see a major disruption of gas supply into the U.S., given Canada is a major supplier of U.S.’s total annual natural gas imports.

That said, President Donald Trump was keen earlier this week to touted his administration’s work on a proposed Alaska pipeline, allowing the transportation of natural gas across the state, for both domestic consumption and to export it overseas.

The administration is “working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner with investment of trillions of dollars each,” Trump said during his address to Congress.

In Europe, the European Commission has proposed retaining the EU’s gas storage requirements and targets for two more years to 2027, despite concerns that these goals are pushing up prices.

“Some read this as a sign that a partial resumption in Russian pipeline gas is possible under a peace deal,” said analysts at ING, in a note.

“In addition, the EU will allow some flexibility in storage targets, although member states should still aim to have storage 90% full by 1 November.”