Sudan edges back from oil showdown with South

Sudan edged back from a day-old order to block all oil exports from South Sudan on Sunday, saying it could reverse its decision if its neighbour stopped backing rebels, and bringing the countries back from the brink of confrontation.

The standoff, even if it is eventually resolved, is a stark reminder of the unpredictability of this small but, for China and other Asian buyers and producers, still significant corner of the crude industry. Sudanese President Omar Hassan al-Bashir on Saturday accused South Sudan of arming insurgents in his territory and ordered the closure of pipelines carrying oil from the landlocked South through his country to Port Sudan on the Red Sea - currently the South’s only export route. A day later, Sudan’s information minister told reporters Khartoum might not go through with the order and gave the South time to respond.