Strain as much of the oil as you are going to use right away; store the rest for up to 4 days at room temperature in a jar with a tight-fitting lid.
Heat the oil and annatto seeds in a small skillet over medium heat until the seeds start to give off a lively, steady sizzle. Don't overheat the mixture or the seeds will turn black and the oil a nasty green. Once they're sizzling away, pull the pan from the heat and let it stand until the sizzling stops.