Preheat medium saucepan on medium-high 2–3 minutes. Place oil in pan; swirl to coat. Add rice and cook 1–2 minutes or until rice is coated and thoroughly heated.
Stir in water, sugar, and vanilla. Bring to a boil; cover and cook 1 minute, stirring often.
Reduce heat to lowest setting and cook 22 minutes. (Do not stir or remove cover during cooking.) Fluff rice with fork and serve.