The sending unit is basically in two pieces. The first is the 45 degree elbow and the second is the cylinder like canister in which the wire hooks up to.
You will want to unthread the ton canister from the elbow and in turn it will give you the clearance to tighten up the elbow. I would actually take it out and put some thread tape or goop on the elbow.
This is the way my sending unit is on my 82' 350. I don't know if it is similar on your 86'
Something I just thought of is that it could be the back of your intake maifild leaking. Those gaskets between the mainfold and the block love to leak after time due to so much expanding and contracting.
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Mike
Vehicles:
1982 C20
2003 GMC Sierra
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