Bicycle Doctor - faqs

Is my chain supposed to be so oily ?

No !

Your chain should not be dripping with oil - the more oil there is on it , the more dirt it'll collect and the faster it'll wear out.
Clean off dirty oil frequently
Make sure that the moving parts inside the chain are 'lubed' and that there is a thin surface layer of lube on the outer plates of the chain. If you have applied too much lube, simply wipe off the excess with a clean rag