Investing.com -- While the precipitous fall in global crude prices has dented Saudi Arabian revenues over the last nine months, the energy crash has apparently had little impact on King Salman bin Abdulaziz Al Saud's lavish spending habits.
When King Salman arrived in Washington for high-level meetings with U.S. president Barack Obama on Thursday, the newly appointed king and his entourage received a dose of royal treatment – literally and figuratively. After landing at the Joint Andrews Base in Prince George's County, the entourage was whisked away by a fleet of black luxury cars, which transported the group to the Four Seasons Georgetown in Northwest Washington D.C. Unlike many travelers during Labor Day Weekend, the group did not have to deal with any potential double bookings. Conveniently, the Saudis avoided such a hassle by booking the entire hotel.
Hotel guests who booked a stay at the five-star resort during the King's three-day trip were moved to other luxury hotels in the area, according to Politico, which first reported the story.
The Washington relic, which opened in 1979, recently completed a $13 million renovation earlier this year. The hotel has reportedly rolled out the red carpet for the King's first visit to Washington since he ascended to the throne in January. King Salman succeeded his half- brother King Abdullah, who died of pneumonia at the age of 90.
An average premier room at the Four Seasons with double beds during a September weekend can cost upwards of $540 a night, according to Yelp.com.
King Salman is expected to discuss a wide range of topics with President Obama, including the impending Iranian Nuclear Deal. When a framework of a deal was reached between Iran and a group of major Western powers in April, Facts Global Energy, an energy consulting firm, forecasted that the Iranian oil exports could reach a level of 1.7 million barrels per day within 12 months of the easing of longstanding economic sanctions against the gulf state. Iran is reportedly hoarding 30 million barrels of crude ready for export.
While OPEC supply fell to 31.71 million barrels per day in August, its first monthly decline in seven months, Saudi output reportedly remained level. In June, Saudi Arabian production reached an all-time record high at 10.6 million barrels bpd.
Although the Kingdom owns 18% of the world's petroleum reserves and is the world's largest exporter of petroleum, the slide in oil prices could lead to significant reductions in its profits from crude sales this year. The International Monetary Fund estimates that Saudi Arabia and its Persian Gulf neighbors could lose up to $300 billion in crude revenues in 2015, the New York Times reported.