Natural gas futures skidded lower on Thursday after the latest government inventory report showed looser supply/demand balances. Still, prices recovered in afternoon trading as the market shifted its focus back to cold weather in the East this week and the potential for more widespread freezes later in November.

The December Nymex contract climbed 4.6 cents day/day and settled at $5.716/MMBtu. It marked the third straight day of gains for the prompt month. January rose 4.6 cents to $5.826.

A chilly weather system settled in across the Midwest and Northeast on Thursday, with highs of 40s to 60s and lows in the 20s and 30s. Icy rain showers and sporadic snow flurries added to heating demand on the day, National Weather Service data showed. The chilly evening lows were expected to...