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Chili oil is a condiment made from vegetable oil that has been infused with chili peppers. Different types of oil and hot peppers are used, and other components may also be included. It is commonly used in Chinese cuisine, Southeast Asian cuisine, Italy, and elsewhere. It is particularly popular in Chinese cuisine, especially western Chinese cuisines such as Sichuan cuisine, Hunan cuisine, Guizhou cuisine, and Shaanxi cuisine where it is used as an ingredient in cooked dishes as well as a condiment. It is sometimes used as a dip for meat and dim sum. It is also employed in the Korean Chinese noodle soup dish jjamppong. A closely related condiment in Chinese cuisine is chili crisp, which contains edible chunks of food and chilis in oil. Chili oil is typically red in color. It is made from vegetable oil, often soybean oil or sesame oil, although olive oil or other oils may be used. Other spices may be included such as Sichuan pepper, garlic, or paprika. Commercial preparations may include other kinds of oil, water, dried garlic, soy sauce, and sugar. Recipes targeted to Western cooks also suggest other popular oils such as rapeseed, grapeseed or peanut, and any dried or fresh chili peppers. The solids typically settle to the bottom of the container in which it is stored. When using chili oil, the cook or diner may choose how much of the solids to use; sometimes only the oil is used, without any solids. Chili oil is easy to prepare, and is also commercially available in glass jars or bottles.

Source: Wikipedia