I'm no chemist, but I think it depends on whether the oil is mineral or organic. Mineral oils can't go rancid because bacteria don't eat rocks, but organic oils (those made from plant or animal fats) can. And I wonder if all bacteria-infested organic oils smell bad. Wouldn't it depend on the type bacteria and degree of rancidity? And that's what we're talking about when an oil "goes bad" or becomes rancid right, some bad level of bacterial growth? Then there is a food-based oil that "goes bad" but not because it's rotting, but because it's changing chemical composition. I think old olive oil does that. Something about free radicals. But those wouldn't be an issue if you aren't eating it.
Hmm. Maybe it's more complicated than just a whiff....
Wouldn't it depend on the type bacteria and degree of rancidity