Heat oil in a large saucepan over medium-high heat. Add onion, jalapenos, habaneros, garlic and cook, stirring, until the onion is soft and beginning to brown, 3 to 4 minutes.

Reduce heat to medium. Add tomatoes, vinegar, salt and sugar. Cook, stirring occasionally, until the tomatoes begin to break down, about 5 minutes.

Carefully transfer the tomato mixture to a food processor or blender. Puree until smooth. Let the sauce cool to room temperature, about 1½ hours.