LONDON- Algeria's Sonatrach slashed the official selling price (OSP) for its Saharan crude oil blend to a five-year low of dated Brent minus 80 cents per barrel for June loadings, the state-owned company said.

The new OSP marks a $1.20 a barrel decrease from May's price, the biggest absolute drop since July 2012 when it slashed the OSP by $2.45 a barrel, according to Reuters data.

(Reporting by Ahmad Ghaddar Editing by Jason Neely and Edmund Blair) ((Ahmad.Ghaddar@thomsonreuters.com; +442075424435; Reuters Messaging: ahmad.ghaddar.thomsonreuters.com@reuters.net))