Saute onion in a little olive oil until soft. In medium saucepan, combine onion with remaining ingredients and simmer uncovered until thick, stirring occasionally (about 15-20 minutes).
I use this sauce in my family favorite....lasagna. If at any time you decide to add meat (it mixes in very well).....about 1 lb. Of hamburger does great! Remember to brown it first though before adding remaining ingredients.