Heat oil in a large, stock pot over medium heat. Cook and stir onion and garlic in hot oil until tender, 5 to 7 minutes.
2.
Stir crushed tomatoes, tomato sauce, tomato paste, and water with the onion mixture until smooth; add sugar, parsley, basil, salt, and pepper. Stir the mixture, bring to a simmer, reduce heat to low, and cook, stirring occasionally, until thickened and the seasonings have permeated the sauce.
3.
Cover the meatballs with the sauce and bake all together.
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