Preheat oven to 300 degrees. Mix together canola and olive oil; set aside.
Place garlic cloves in an ovenproof heavy-bottomed saucepan or Dutch-oven with a lid. Add bay leaf, a scant tablespoon salt, and peppercorns. Add enough of the oil mixture to barely cover.
Cover pan and transfer to oven. Cook until garlic is pale golden and very tender, 1 hour to 1 hour and 15 minutes. Remove from oven and let cool to room temperature.
Using a slotted spoon, transfer garlic cloves to a cutting board or the bowl of a small food processor, reserving oil; finely chop or process until pureed. Transfer to a bowl and add just enough reserved oil to cover. Keep refrigerated, up to 3 days.
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