That's the story with steel cylinders?
Yup, oxidation (rust) in a steel cylinder can consume the oxygen and reduce the O2 percent in the mix.
In one study at the University of Rhode Island, where cylinders were steel cylinders were stored full of air and cooked at 100 degrees for 90 days with 500ml of salt water, rust reduced oxygen to 15.0% and increased carbon monoxide to 10 ppm. Control cylinders did not demonstrate such changes in that study. (Cichy, Francis, Hilbert Schenk, and John J. McAniff. Corrosion of Steel and Aluminum Scuba Tanks, University of Rhode Island Technical Report 62, 1978.)
In 1974 there was one documented case of a death that was caused by breathing a corrosion-induced hypoxic mixture. (Schench, Hilbert V., and McAniff, John J. United States Underwater Fatality Statistics-1974. NOAA Report URI-SSR-75-10)
In this case, the diver used his steel cylinder on a dive. There was 300 psi remaining when he put it away.
Three months later, he took the same steel tank (with only 300 psi) to a depth of 12 feet to search for an outboard motor. Five minutes into the dive his bubbles were noted to cease and his body was later recovered.
Analysis of this accident revealed severe corrosion of the tank with large amounts of rust. There was 200 psig remaining but the oxygen content of the gas was measured to be only 2% to 3%.
The steel tank in this accident had neither a current hydro nor a current visual inspection.
It is unlikely that any of these scenarios would be encountered today, but it is food for thought.