CHENGDU, Dec.19 (NBD) -- New energy industry may gain more momentum for development as oil price is expected to continue to rise in 2017, said an analyst.

Starting in January 2017, 2 percent of global oil production will be cut following first the Organization of Petroleum Exporting Countries (OPEC), then Russia, Kazakhstan and other producers unanimously agreed to cut their output to boost prices.

A securities analyst from oil industry noted that except for oil producers, the alternative energy industry, especially the electric car industry would benefit from rising oil prices.

Electric cars have been on the market since 2009 but its growth slowed down in recent years, he added. The new round of price hike may present a new opportunity for it to thrive. The rising oil price, coupled with subsidies offered by Chinese government, electric car industry in China will be even more promising.