Will panic normally cause sudden drop in oxygen saturation levels? with sudden pulse of 144, oximeter went from 95% to 83%. is that a normal reaction?

Not normal!: I don't know of "normal" reactions to panic. But something was not right to have those vital sign extremes. See a doctor to for an exam and report those stats. A feeling of panic can be a symptom itself, especially if there was no environmental or pre-cursor emotional horror to cause it. If your cardio system is ok, get a referral to a psychotherapist w/ excellent anxiety-panic tx skills. Best wis.