UK's FTSE 100 steadies after worst week since April as oil eases

Oct 5 (Reuters) - The UK's FTSE 100 rose on Monday, steadying after its steepest drop since April last week, as prospects of higher crude supplies kept prices in check.

The blue-chip FTSE 100 index closed 0.34% higher at 10,497.94 points. The midcap FTSE 250 dipped 0.29% to 24,123.75 points.

• Brent crude futures dipped 0.44% to $101.83 a barrel, after exports from the Middle East increased and the Group of Seven nations pledged to boost supplies [O/R]

• Still, the conflict between Yemen's internationally recognised government and Iran-backed Houthis kept investors on edge

• A survey on Monday showed British services firms reported stronger cost pressures last month as fuel prices surged due to the Middle East conflict

• Fuel prices have been under scrutiny owing to their impact on inflation expectations and the Bank of England's interest rate trajectory

• "Energy prices have risen too sharply, and a drop seems too distant a prospect for the MPC (Monetary Policy Committee) to sit on its hands and hope second-round effects fail to materialise," economists at Pantheon Macroeconomics wrote

• Traders currently see a nearly 97% chance of a rate hike at the next central bank meeting in November, according to data compiled by LSEG

• Metals and mining shares rose 1.65% as copper prices rose for a second straight day

• Ithaca Energy rose 2.2% and was among top gainers on the FTSE 100 after it agreed to acquire Suncor Energy's offshore oil assets for $842 million in upfront cash

• "This deal for Canadian assets provides a level of diversification," said AJ Bell investment director Russ Mould

• BT Group rose 1.4% after it agreed to buy troubled broadband provider TalkTalk for £400 million ($530 million) in a government-backed rescue deal

(Reporting by Niket Nishant and Darshan Kumar in Bengaluru; Editing by Priyanka G and Joyjeet Das)