In a large pot heat oil over medium heat. Add chopped onions and saute, stirring occasionally for 3 to 5 minutes or until softened. Add chopped tomatoes, sugar, salt, black pepper, and water. Cover the pot, cook and simmer, stirring occasionally for 20 minutes or until tomatoes are tender.
Remove the pot from the heat and let it cool a little. Blend tomato mixture in a blender until smooth. Return to the pot. Add the basil and parsley. Cover the pot and cook over medium heat for 5-7 more minutes. Then add cream and cook for 1-2 more minutes (don't let boil). Serve immediately.
If soup is too thick, add more water.