It's fine, leather likes oil every now and then usually. But, wiping "dry" is a good idea anyway and you're not likely to wipe all of it off unless you really scrub it. You only need a light coat of oil on the blade for it to work. The waiting period isn't necessary.
K
killgar
does have a good point though, as long you wipe the blade dry you're already doing a lot to keep it from rusting. I don't oil many of my carbon kitchen knives or carbon steel knives that I use in the kitchen, since using other hunting and bushcraft knives in the kitchen is fun, after using them. I wash, wipe dry, air dry, and then 95% of the time they're good to go. Sometimes I have to flip them over as the blade condensates or water collects on the bottom side but that takes care of them just fine. I like the patina that forms from leaving the oil off.
Look up the rust eraser, it's a really nifty tool for carbon steel blades and especially if you're trying to keep some of your working knives pretty looking. If you like the patina'ed look, wash the rust off with vinegar; it makes the rust spot a dark, pepper spot and that also helps prevent further rust. I've found patina to be a pretty good rust preventative.
I know baryonyx knife sells the rust eraser (along with a great set of sharpening stones) but it should be available numerous places. Basically a pencil eraser-like block with light abrasives in it that does a really nice job cleaning up small areas. It's a great size for cleaning up the blades on carbon steel slipjoints.
www.baryonyxknife.com
Lastly, try some CLP paste if you the best rust protectant (also fine in a leather sheath but use a light coat for sure, a little goes a really long ways). I use the seal1 that collectorknives carries (it's firearm CLP so it's probably available at numerous gun shops or websites) or the froglube CLP paste that a good friend recently recommended who uses a lot of carbon steel tools for maintenance in a very wet, paper mill environment. I usually only use this for long-term storage or if I know I'll be in a really wet environment for a long time. Standard mineral oil or 3-in-1 has worked fine for me for a long time.
We have used many different products to inhibit rust as we store some things for a long time. Also, there are some knives that seem to want to rust while you are looking at them. For the joints I use Slick50, but you can get that just as easy as I can. For a protectant I have used spray...
www.collectorknives.net