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In Brazil, it's like that, but the word "azeite" may mean oil in other cultures.
Some soy oil bottles come labeled as "azeite de soja", although we never call it like that, we say "óleo de soja".
One particular case in which Brazilians also use azeite is in "azeite de dendê" (a red palm oil).
Well.... take it as bees that write letters....
Brazilians don't "drink" oil (I bet you knew that...but...)
Most Brazilians actually don't even like that much pepper in their food. When we travel, we find it very hard to get used to other countries' spicy food. When we use pepper, we do it seeking a flavor, not a burn.
Which is definitely not made "only" of that haha.
It's fried, so it presumably has a lot of oil. They use "palm oil", a red oil called "azeite de dendê". (Great! Found another usage of "azeite" besides "olive oil", that's rare).
This oil is very strong and may not be well accepted by some people.