Brent trades near $97 but set for weekly fall on supply

* French, U.S. planes strike Islamic State militants * Saudi oil output seen steady on expected rise in demand * Libya's oil output rises to 925,000 bpd (Updates prices; adds attacks on Syrian oilfields) By Seng Li Peng and Florence Tan SINGAPORE, Sept 26 (Reuters) - Brent crude traded near $97 a barrel on Friday, but was set for its third weekly fall in four, as hefty supplies erased price