What you see on the adhesive are the short wood fibers that it simply tore out. The adhesive apparently penetrated the oil well enough to reach the wood. However, through drying and shrinking, it simply ripped out the fibers. I would say this cannot hold. A better bond would be achieved if the wood were painted, but this cannot be reasonably done unilaterally. You have to imagine that the wooden step can swell or shrink by up to about 6% in width. These are enormous forces pulling on the adhesive bond. And you cannot prevent that – with painted wood you only reduce the process somewhat.