Oil prices below $78 in asia

Global oil prices plummeted in Asian trade Tuesday on concerns that energy demand will drop sharply following Standard & Poor''s decision to cut the U.S. debt rating. WTI crude for September delivery was seen trading at $77.81 a barrel at 12.30pm Singapore time while Brent crude dipped to $101.06 a barrel on the ICE Exchange in London. Earlier, US prices fell $5.60, or 6.89%, to a low of $75.71 in intra-day trade before clawing back some ground while Brent crude briefly dropped under $100 at the opening. Analysts said the black Gold is likely to extend losses during the day as global markets including equities and commodities remained under the clutches of fears the U.S. will soon fall into recession. Crude prices went into freefall after the unprecedented downgrade Friday of the US'' long-term sovereign debt rating from AAA to AA+. Crude has fallen 32% since reaching nearly $115 in May. In other Nymex trading in September contracts, Heating Oil fell 4.1 cents to $2.76 a gallon while Gasoline dropped 5.1 cents at $2.64 a gallon. Natural Gas futures slid 2.1 cents at $3.91 per 1,000 cubic feet On Monday, oil prices fell more than five percent as the unprecedented downgrade of the United States''s credit rating shook financial markets and sparked fears of slowing global energy demand. New York''s main contract, West Texas Intermediate (WTI) light, sweet crude for delivery in September, fell $5.57 to close at $81.31 a barrel, its lowest level since November. In London, Brent North Sea crude for September tumbled $5.63 to settle at $103.74 a barrel on the Intercontinental Exchange.