Warm oil in a skillet over medium-low heat. Stir in onions. Cover; cook for 15 minutes, stirring, until onions are translucent. Remove lid; cook, stirring occasionally, until onions are golden brown, 8 to 10 minutes longer.
Stir in ketchup, barbecue sauce, hot sauce, allspice, chili powder, salt and 3/4 cup water. Bring to a boil. Reduce heat to medium-low and simmer until most of liquid has evaporated, about 15 minutes. Serve warm.
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