Heat the oil over medium-high heat in a heavy-bottomed saucepan. Add the onion; cook until soft, 3 to 4 minutes. Add the garlic and cook for 1 minute. Add the ketchup and 1/3 cup water, bring to a boil and simmer for 5 minutes. Add the remaining ingredients (except salt and pepper); simmer for 10 minutes, or until thickened, stirring occasionally.