Combine butter and oil in medium saucepan and heat over medium-low heat until butter is melted. Add garlic, oregano, pepper flakes, and large pinch salt and cook, stirring frequently, until fragrant but not browned, about 3 minutes. Add tomatoes, basil sprigs, onion halves, and sugar. Bring to a simmer, reduce heat to lowest setting (bubbles should barely be breaking the surface), and cook, stirring occasionally, until reduced by 1/2, about 1 hour. Season to taste with salt. Allow to cool and store in covered container in the refrigerator for up to 2 weeks.
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