Oscillation - it is possible. It looks like a Flip-Flop with tuned drain circuits to me. Since the LC combination has no phase shift at resonance, it does not help any. What helps, is that the MOSFET that is "on" only has a given amount of current (current source at the bottom of the figure) and after some time
the current through the inductance does not increase and the voltage across it will decrease. This will make the other MOSFET start conducting, sending a current through its drain circuit and "stealing " current from the first MOSFET. This behavior will "kick" the drain circuit into oscillation mode and couple this oscillation to the other MOSFET.
There are several variants of LC tank oscillator, and this is not one of the most used. The dominant circuits are the Colpitts oscillator (
https://en.wikipedia.org/wiki/Colpitts_oscillator) and the Hartley oscillator (
https://en.wikipedia.org/wiki/Hartley_oscillator).