Measure the rice into a medium pot. Add enough water to cover the rice by an inch, gently swish the rice and water, and pour off the water. Repeat 4 or 5 times, or until the water is almost clear (picture on the right).
Add enough water to cover the rice by an inch and let it soak for 20 minutes.
Drain the rice well (I use a fine metal sieve). Add the water, salt, and oil to the pot. Bring it to a boil over high heat, cover the pot, turn the heat down to low, and simmer for 20 minutes--don't lift the lid. For anything.
After 20 minutes the rice should look like this. If there is any water still left in the bottom of the pot, taste a few grains of rice. If the rice is done, leave the lid off and simmer off the rest of the water. If the rice isn't quite done yet, replace the lid and simmer for another 5 minutes, or until the water is absorbed and the grains are tender.
I've found the best tools for fluffing steamed rice are chopsticks. They fluff and separate the rice without making it clump onto the fork or spoon, and they don't break the delicate grains (especially important with very long-grained basmati rice).
