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For Beef Tenderloin:
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Preheat oven to 350u00b0F. Place rack on rimmed baking sheet.
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Sprinkle beef generously with salt and pepper.
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Heat oil in heavy large skillet over high heat. Add beef to skillet and cook until brown on all sides, about 5 minutes.
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Transfer beef to rack on baking sheet and Roast in oven until thermometer inserted into center of beef registers 120u00b0F for medium-rare, about 35 minutes.
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Transfer beef to cutting board and let rest 10 minutes.
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For Red Wine Sauce
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Heat oil in heavy large saucepan over medium-high heat.
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Add shallots and saute until tender, about 12 minutes. Sprinkle sugar over; saute until mixture is deep brown, about 4 minutes longer.
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Add vinegar; stir until liquid evaporates, about 1 minute. Add wine; boil until reduced by half, about 20 minutes.
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Add broth, thyme, peppercorns, and bay leaf; bring to boil. Reduce heat to medium; simmer uncovered 35 minutes to blend flavors, stirring occasionally.
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Strain sauce through fine strainer into small saucepan; discard solids.
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Mix butter and flour in small bowl. Bring sauce to simmer over medium-high heat.
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Gradually whisk in flour mixture. Cook until sauce is reduced to 2/3 cups, about 5 minutes.
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(Sauce can be made 1 day ahead. Cover; chill. Rewarm over medium heat.)
