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* FTSE 100 trades flat
* Mining stocks track metals prices
* Energy shares down as oil slips
By Atul Prakash
LONDON, Feb 8 (Reuters) - Britain's top share index steadiedon Wednesday, underperforming European peers, with a drop inenergy stocks on the back of weaker oil prices offsetting amining sector rally.
The blue-chip FTSE 100 index was flat in percentageterms at 7,188.20 points by 1006 GMT, after closing marginallyhigher in the previous session. In contrast, the pan-EuropeanSTOXX 600 index was trading 0.6 percent higher.
Rio Tinto rose 1.8 percent after the world's No. 2iron ore miner beat profit forecasts on the back of cost-cuttingand a strong recovery in iron ore prices and said it will pay abigger-than-expected annual dividend.
"All the dials seem to be moving in the right direction atRio, mainly thanks to the self-help measures implemented by thecompany," Hargreaves Lansdown analyst Laith Khalaf said.
"Mining companies are price-takers, and have no control overcommodity markets, but Rio has made ground by cutting cash costsand scaling back the dividend."
Rio shares have more than doubled since early 2016.
The UK mining index rose 1 percent, alsosupported by a 1.5 percent-1.6 percent rise in Antofagasta, Anglo American and Glencore shares.
Rolls-Royce rose 2.6 percent to 718 pence, making itthe top gainer in the FTSE 100, after JP Morgan raised itstarget price to 740 pence from 730 pence and increased its 2016earnings per share forecast by 11 percent.
However, gains were negated by weaker energy stocks.
The UK oil and gas index fell 1.3 percent,making it the biggest sectoral decliner, after oil pricesextended Tuesday's falls following a massive increase in U.S.fuel inventories and a slump in Chinese demand.
"Energy shares have been weighed on by a surprisingly largeU.S. API oil inventory build stoking fears that rising U.S.shale production will outweigh OPEC cuts deigned to rebalancethe global oil market," Accendo Markets analyst Henry Croftsaid.
Shares in Royal Dutch Shell and BP fell 1.6percent and 0.5 percent respectively, while mid-cap Tullow Oil was nearly 5 percent down. (Editing by Louise Ireland)
