Core Viewpoint - In November, Shandong's refining units turned a profit after a period of losses, with an average theoretical profit of -32.4 yuan/ton. However, in December, despite expectations of rising feedstock prices, the profitability of these units is expected to fluctuate around breakeven due to weak product prices [1][2]. Group 1: Profitability Trends - In November, Shandong's refining units experienced a mixed performance, with losses in the first half of the month and profits in the second half, resulting in an average theoretical profit of -32.4 yuan/ton [1]. - The profitability of the refining units improved in the latter half of November as product prices strengthened while feedstock prices weakened, leading to a gradual shift from losses to profits [2]. - The outlook for December suggests that refining unit profits will remain within a positive range, driven by strong expectations for gasoline prices despite weak feedstock price trends [3]. Group 2: Market Dynamics - The crude oil market's support for product prices is limited, with supply and demand dynamics influencing the pricing of oil products [2]. - The feedstock market for naphtha is experiencing a decrease in circulation, which supports price increases; however, high prices may deter downstream buyers, limiting the sustainability of these price increases [2]. - The product market is expected to maintain a narrow fluctuation in prices in the short term, with a bullish sentiment for gasoline leading to increased procurement activities [3].