yes it does.
but the entire inside of your 1/4 won't go up in flames in 20 seconds after a spark hits the oil. i have seen this happen several times.
also when wax based rustproofing ignites it's a small controlled fire that you can easily blow it out with compressed air, even blowing on it from your mouth will put it out. with oil the compressed air actually makes the fire burn hotter and faster.