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That is correct, however, the clear plastic cup is actually there to hold oil in it as to keep the wicks that surround the ceramic plungers soaked in an oil bath. Technically, you don't have to oil the pumps IF the oil cup has oil in it as the wicks would always have oil in them.
With that said, I do over oil my cat pumps. At least once every two to three days. If you really over oil them, the cup will overflow onto the floor and leave a small puddle of oil.
The funny thing is the Cat 5CP models use the same type plungers and the very same seals but have no oil points. The seals that are kept oiled by the wicks are coated with graphite lube when new - I would think oil would just rinse that protection away.
The CAT plunger pumps are just converted piston pump designs. We have all come along way in the last 40 years! There are many that do not oil these at all or remove them. The only outcome of removing I have heard is that it reveals oil leaks from the crankcase oil seals that are hidden if the wicks are in place. I guess they act sort of like a mop.