Asian spot prices for LNG rose to 2016 highs during the week of Nov. 28, lifted by OPEC's announcement that it would cut crude oil production in cooperation with Russia, as well as by a tightening regional gas market.

Spot prices for Asian LNG rose 30 cents from the week of Nov. 21 to about $7.40 per million British thermal units (MMBtu), trading sources said.

The main price driver was an agreement reached by OPEC and Russia to cut crude output in order to rein in global oversupply that has dogged markets for over two years. The announcement led to a more than 10% rise in oil prices to above $53 per barrel.

With most Asian LNG supply contracts linked to the price of crude, and oil playing a key role shipping costs, the spot LNG market was also affected, traders said, pushing prices to their highest level since late November 2015.

"Whether it's by sentiment, the contractual link between LNG and Brent, or by fuel cost for tankers, the higher oil price because of OPEC's cut has also pushed up LNG prices," one LNG trader in Singapore said.

On the demand side, cold weather in the biggest LNG importing countries is also lifting prices, as many traders expect utilities in Japan, South Korea and China to turn to the spot market to buy cargoes to meet strong heating demand.

Weather data in Thomson Reuters Eikon shows that average temperatures in Tokyo and Seoul are expected to be below the seasonal norm in the next 45 days of peak winter demand.

On the supply side, Chevron Corp. (NYSE: CVX) said on Nov. 30 that it halted production from one of its two production units at the huge Gorgon export plant offshore Western Australia.

"Production from Gorgon LNG Train 1 has been temporarily halted as we assess some recent performance variations. Train 2 production is unaffected, and we continue to produce LNG and load cargoes," a spokeswoman for Chevron, Gorgon's operator, said in an emailed statement.

The energy major is now seeking three prompt LNG cargoes, in order to meet its supply requirements with clients, said trading sources.

In other LNG news, Egypt will import about LNG 60 cargoes next year, with Glencore contracted to supply about 25 cargoes and Trafigura winning the right to supply 18 cargoes.

State-run EGAS, which issued the import tender in late October, sought a total of 96 cargoes for delivery in 2017 and 2018, with an option to buy 12 additional cargoes in 2017.