Yes, Olive oil does go rancid, despite the fact that we think of it as an item with an indefinite shelf life.
The bad oil will not make you sick, but it will damage your recipe by imparting an awful flavor.
Olives are a fruit and Olive oil is created by pressing fresh olives like fruit juice. So, Olive oil can spoil, like fruit.
Most olive oil has a shelf life of 18 to 24 months, with extra-virgin olive oil having a slightly shorter shelf life of about 12 months.
If you do not store olive oil properly after opening the bottle, it will expire sooner. It's a good idea to use opened olive oil within 60 days, or no more than a year.
Sniff opened oil before using. If it's old, it smells like crayons, putty, or old peanuts right out of the bottle.
Or, Pour 1 tablespoon olive oil in a cup and smell. Taste it if you're unsure. If olive oil tastes like rotting fruit or feels greasy, toss it.
The expiration date on your olive oil bottle is not as significant as you may believe, and it may still be good anywhere from three to six months later.