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1. Pour the oil into a small saucepan or skillet and heat it over moderate heat until a light haze forms above it.
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2. Stir in the annatto seeds and, when they are evenly coated with oil, reduce the heat to medium and simmer for about 1 minute.
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3. Remove the pan from the heat, uncover, and let the oil cool to room temperature.
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4. Strain the annatto oil into a jar, cover tightly with plastic wrap, and refrigerate it until ready to use. Discard the seeds.
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5. Annatto oil will keep for several months, but its flavor and color will diminish with age.
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6. The oil is used to give a reddish-orange color and a mild flavor to meat, poultry and seafood sauces in many Caribbean islands as well as in Latin America.
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