In a large bowl, stir together the panko and milk with a rubber spatula. Let sit for 5 minutes.
In a Dutch oven, combine the tomatoes, oil, sugar, and ¼ teaspoon salt, stirring until mixed.
To the panko mixture, add the beef, Parmesan, garlic powder, oregano, and remaining ½ teaspoon salt. Mix with your hands until well combined.
Divide the mixture into 12 equal portions (about 3 tablespoons each) and place them on a large plate. Lightly wet your hands and roll each portion into a ball.
Add the meatballs to the sauce in the pot. Wash your hands.
Bring the sauce to a simmer over medium heat, stirring occasionally. Cover and cook until the meatballs are cooked through, about 15 to 18 minutes. Serve.