Circle hooks are the only way to go especially in a fishery where releasing the breeding females, the ones you will not eat, is so critical. Remember, when the limit is only one fish per person per day many fish will be hooked and released, circle hooks significantly reduce mortality among hooked and released fish period. Anyone who does not use circle hooks is a fishing Neanderthal and in my opinion doesn't care about the fishery, doesn't know how to use a circle hook or believes bringing a fish over the gunwale for a prize or for clients is more important than having the 99% chance of releasing that fish virtually unharmed.
Personally I feel the 7/0 is a bit big but you must match the hook to the size of the eel. A bigger eel should perhaps get a 7/0 but I primarily use 6/0s. Additionally the smaller the hook the better when fishing light tackle and light drags, remember the hook mush penetrate the fish's jaw and drag pressure does that light tackle = light drag you must use thin, small, razor sharp hooks. Again I like the smaller eels and 6/0 Gamakatsu octopus circle hooks. If you have any further questions call me 407 5812 I will be glad to help.
Don't give up on the circles they are much better for our fish and they significantly out perform "J" hooks. I also find it humorous that as soon as someone loses a fish on a circle hook they tend to blame or at least wonder if the hook is to blame. I've lost plenty of hooks on "J" hooks I can tell you that. It's a matter of confidence and you can only build that confidence by using circle hooks believe me once you see the light you will never switch back. I can't even remember the last time I "set" the hook on a fish... that's a good thing!!!