what does an opec ready to come into the market and supply with oil mean for ryan lance and conoco? we look at supply demand as balanced today, but cautiously so. inventories have come back down to five-year average levels, but it does not take much of a geopolitical impact to go up or conversely, a demand impact if demand were to go down, prices would fall, so i think it is tenuously balanced. i don't necessarily worry too much about the increase that opec has talked about because it's really getting up to where they are today and recognizing -- sure. you are right, but a dusting to imply there will be a caps on prices. can you live with that? mr. lance: absolutely. we have decided to embrace volatility, decided not to chase the cycle of or down, try to operate at the mid part of the cycle, know that you can run the company well at $40 or $50 should the price go down to that because of demand reasons, destruction reasons, or other reasons. we know what to do if it's 70, 80, or $90 a barrel, but we try to set up the company to work at 50 or below and we can break even at $40, which

ryan lance, ceo of conoco phillips, told me this week at the world gas conference in d.c. what he is afraid of. ryan: hopefully this does not escalate into a large-scale trade war, that will not be good for the world. our business probably is the aluminum and the steel tariffs that are placed on some of those products. for a company not having a huge impact in 2018, but i think if it is this persistent in 2019, 2020 and beyond, the cost of steel is rising. it has a material impact on the companies as we go forward. alix: but this week, industrial metals felt the pain. the become industrial index down almost 2%. what is the relationship of metals and trade? dan: clearly, what you have is a president who is intent upon starting a trade war with the chinese. now, he has backed away a little bit in the past two days from this kind of intellectual property piece of the puzzle, but he has not backed away at all with this idea of steel and aluminum tariffs, not just on the chinese, but the canadians as well. that is having a domino effect on all of the industrial metals going forw

spoke with several industry leaders about their concerns starting with conoco phillips chairman ryan lancee impact between china-u.s., the u.s. and the rest of the world, how is that affecting your business? >> we're watching it closely and hopefully this does not escalate into a large-scale trade war that will not be good for the world. our business is the aluminum and steel tariffs placed on some of those products. having a huget impact in 2018, but if this persists into 2020 and beyond, certainly the cost of that kind of steel is rising. it has a material impact on companies as we go forward. we use the steel in the pipelines we run across the surface to move our product around. so, certainly over the long haul, it will start to have an impact, not so much today. we hope a lot of this get solved in the near term. alix: what about on the demand side? lng. buying a ton of buying oil from the u.s. >> we do sell a little bit. some of our exported -- have made their way to china to some of the refineries on the chinese coast. today, we have not seen a large impact for that demand. we will se

ryan lance, interesting, it will be an oil permian conversation, as well as a trade conversation.ets, we are softer as the trade continues. s&p futures off by two. dollar-yen off by .2%. the yen still trying to persist, the safe haven of choice. watch tech stocks. they got hammered yesterday. 10-year, 2.87. not the kind of yields that you would expect to see based on the massive equity moves we saw yesterday. david: now it's time for the morning brief. 9:00 this morning, we get u.s. house prices for april. at 10:00, we are watching for supreme court decisions on the travel ban and labor union cases. and at 1:00, the u.s. treasury is selling $34 billion of 2-year notes. alix: company starting to detail the impacts of tariffs on their business. yesterday, harley davidson saying that they would ship their production out of the u.s.. this morning, the president on twitter, they were just using the trade war as an excuse. unbalanced the trade war is, but we will fix it. we are opening up close to markets and expanding our foot. play there or they will pay tariffs. unbalanced the trade