Hi Glenn
I use sunflower-oil, but I think canola is equal. ( The VW-Passat of a friend of mine runs with canola oil instead of diesel 8).
No, no soaking needed.
I take a brush or a piece of clothes and dispense a little bit, especialy on the edges. Like if You want to clean or polish the belt or so.
The belt of my machine is covered with black polyurethane ( teeth are solid polyurethane) and covered with a thin yellow-white nylon-film on theeth side.
The effect seems to me the same as walking with a special sole of a shoe on a smooth floor (squeak, squeak).
Therefore You need not much oil, only a thin film to disrupt the vibrations.
Sometimes some people are afraid that the belt slips off when putting oil on it: me and other drivers here in germany have never watched the belt slipping of even if You use too much oil. Some mechanics told me so, but if I ask them closer they also have never watched such an effect.
On contrary, in my opinion it could not slip off, due to the teeth. So there is absolutely no risk of using edible oil.
Only one drawback I know: If You use too much oil, dirt will easily adhere on the belt. But not if You use it "economically"
Hope this info helps You.