Error while installing web sockets on Ubuntu 16.04

Question

I try installing the requirements of liveblog in the server directory with:pip install -r requirements.txt.

This throws the error belog. I also tried running it with sudo -H pip install -r requirements.txt but it still gives me the same error.

I updated setuptools with: sudo easy_install -U setuptools and pip is on 9.0.3.

Here is the log:

Command "python setup.py egg_info" failed with error code 1 in 

/tmp/pip-build-z6ewX7/websockets/
Exception information:
Traceback (most recent call last):
  File "/usr/local/lib/python2.7/dist-packages/pip/basecommand.py", line 215, in main
    status = self.run(options, args)
  File "/usr/local/lib/python2.7/dist-packages/pip/commands/install.py", line 324, in run
    requirement_set.prepare_files(finder)
  File "/usr/local/lib/python2.7/dist-packages/pip/req/req_set.py", line 380, in prepare_files
    ignore_dependencies=self.ignore_dependencies))
  File "/usr/local/lib/python2.7/dist-packages/pip/req/req_set.py", line 634, in _prepare_file
    abstract_dist.prep_for_dist()
  File "/usr/local/lib/python2.7/dist-packages/pip/req/req_set.py", line 129, in prep_for_dist
    self.req_to_install.run_egg_info()
  File "/usr/local/lib/python2.7/dist-packages/pip/req/req_install.py", line 439, in run_egg_info
    command_desc='python setup.py egg_info')
  File "/usr/local/lib/python2.7/dist-packages/pip/utils/__init__.py", line 707, in call_subprocess
    % (command_desc, proc.returncode, cwd))
InstallationError: Command "python setup.py egg_info" failed with error code 1 in /tmp/pip-build-z6ewX7/websockets/

I am running ubuntu 16.04 on a server.

What I have found out so far is that the error comes from this line in the setup.py file.

Does it have something to do with my server setup or what could I try to resolve the error?