I suspect that olive is less than ideal because it is fairly viscous and won't penetrate as well as some of the other oils, such as linseed. It won't do any harm, but may be more work to use. Make sure to wipe off any excess properly, otherwise your drum will start to smell rancid after a while.
Be careful with oil on the bearing edge. Any excess will seep into the skin and weaken it. I use a smidgen of shea butter on the bearing edge before mounting a skin, to help repel moisture and reduce swelling of the end grain around the bearing edge. But, again, only a very small amount, and I wipe the bearing edge with a clean dry polishing cloth before mounting the skin, to make sure there is no excess shea butter left on the rim.
Personally, I prefer Organoil Decking oil for the inside, and furniture wax for the outside. (See
this post for details and URLs.)
The decking oil is very thin, so it penetrates very well, It contains a lot of Ti Tree and Eucalypt oil. These are very sharp and strongly-smelling oils (not unpleasant, just strong), so the drum will smell a bit for the first two weeks. But the oils are so aggressive that no self-respecting bug can live in them. This means that they are very good at preventing bacterial and fungal growth, and the oil won't go rancid.
For the outside, bees wax is also a great choice. Repels water very well, and smells nice.
Cheers,
Michi.