Bunker operations in Sri Lanka were expected to be normal in July, with moderate demand as the monsoon season continues, sources said, adding that sales have been lower of late than seen during a busy June.

Crude oil futures plunged more than 7% during midmorning New York trading July 5 with NYMEX WTI falling below $100/b as recession fears flooded the market amid the return of US traders following a long holiday weekend.

Crude prices moved sharply lower July 5, with ICE Brent dropping 9.5%, as recession fears fueled demand growth concerns, overshadowing continued global supply tightness.

Scheduled global airline capacity rose about 1.5 million seats, or 1.5%, to 101.4 million seats for the week started July 4, with many regions registering small increases, aviation data company OAG said, indicating rising jet fuel demand.

Market sources said Asia could also be one of the major destinations for Russian HSFO cargoes after the West placed sanctions on Russian oil imports.

The Asian marine fuel 0.5%S market is unlikely to weaken in July despite a drop in Singapore 10 ppm gasoil crack spread, traders said.

Italy's Sarroch refinery was operating normally after a fire late June 25 on equipment taking solid sulfur to silos at the complex, the company said June 27.

The bunker supplier also added that the tight LSFO supply situation in China is recovering at a quicker pace compared to Singapore, thus the firmer bunker prices at the world's largest bunker hub.