Many people have a hard time keeping olive oil fresh once they bring it home from the store. Exposure to sunlight, heat and air can turn the oil rancid, and make it unsuitable for cooking. If the oil has a buttery taste, it's likely turned bad.
It's best to keep your olive oil (all oils, actually) away from light and away from the heat of the stovetop or oven. I store mine in a roll-out shelf under the kitchen counter, so they're still easily accessible for cooking and protected from light. Another important tip is to make sure that the bottle is tightly capped. You can refrigerate most grades of olive oil (it's not recommended for extra virgin olive oil though, as condensation can develop in the bottle and affect the flavor). If the oil is cooled in the refrigerator, it may temporarily become cloudy and viscous - potentially even solidifying. Once the oil is warmed back up to room temperature, the oil will clarify and is fine to use. Some cooks keep their olive oil in their wine cellar - and decant only a small amount for normal kitchen use. Unfortunately, I don't have a wine cellar so I can't attest to this method - though I find that the cabinet works just fine.
I typically just store the oil in the bottles it comes in, though you can successfully store it in tinted glass, porcelain or stainless steel containers. Never store oil in plastic (as it can absorb harmful chemicals) or reactive metals.
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