We receive many phone calls and emails about this commonly occurring situation. The short answer is, “Your olive oil is perfectly fine to use”. The longer answer is your oil’s cloudy appearance can occur for a couple of reasons. Your Baklouti Green Chili is a fused olive oil. Fused oils are produced by crushing the olives and the fruit, peppers or herbs together at the same time. The cloudiness is a natural result of this process as small particles of olive skin and fruit, pepper or herbs as well as healthy enzymes can appear in your oil. This sediment may look ominous, but it is what gives your olive oil the irresistible flavor that you love. Since our oil is made in batches, one bottle may have more olive sediment than another so one bottle may appear perfectly clear depending on when the oil was decanted in the batch. This can occur in both our fused as well as infused oils.