When olive oil is too old and has oxidized, it is usually rancid. Oil doesn’t suddenly go rancid, it slowly becomes more oxidized and as it does, the flavour suffers.
All oils go rancid with heat, light and exposure to oxygen.
Olive oil with low acidity and high antioxidants last longer on the shelf and tend to oxidize more slowly at high frying temperatures.
Extra Virgin Olive oil by definition has nothing added, high antioxidants and low acidity. Most seed oils such as corn, canola and sunflower are inedible and unusable unless they are refined to remove acidity and have artificial antioxidants added to extend shelf life.
Even though Extra virgin olive oil are stable, it will go rancid if kept in a hot place in the light.
Best storage is in a cool, dark, airtight container. Oil will go rancid much quicker once heated and exposed to air than in a sealed bottle.