Actually, I don't even do that with my hot peppers. I just rinse, dry, & freeze them whole.
For Bells I seed & either slice &/or chop, & then freeze.
For either - no oil, no nothing. I've had peppers come out of the freezer top quality after nearly a year of being in the freezer.
I guess I misunderstood this. I thought by "top quality" you meant top quality.