Heat oil in a heavy bottom saucepan over medium heat. Add the shallot and sauté for 2 to 3 minutes. Add the garlic and sauté for another minute. Dump in the peaches, vinegar, sugar, bay leaf, thyme, red pepper flakes, ground pepper, and garlic powder. Adjust the heat to a bare simmer. Cook until thick and jam like, about 45 minutes. Stir every so often, and add a little water if the mixture starts to look dry or it gets too thick. Remove the bay leaf and thyme sprigs. Store in the refrigerator in a tightly sealed glass jar.