Heat olive oil in a small saucepan over medium heat.
Tip: Reduce the heat to low (or turn it off completely) before adding the chili powder to avoid burning.
Once hot and shimmering, add chili powder and stir. Saute for 30 seconds, just until the chili powder becomes fragrant and slightly toasted.
Whisk in flour until no clumps remain. Stir in the enchilada sauce, whisking until fully combined.
Add water, ketchup, adobo sauce, sugar, and salt. Simmer over low heat until slightly thickened, about 5 to 8 minutes. Taste and season with additional salt, if needed.