This study proposes a capacity spectrum Method (CSM)-based procedure to estimate the maximum seismic performance of steel buildings passively controlled with bilinear oil dampers. In the proposed CSM, the maximum seismic response of a building was estimated, in the acceleration-displacement response spectrum, as the intersection between the capacity curve and the damping-adjusted demand curves, using the equivalent linearization method. The building equivalent damping ratio was determined by the sum of the inherent damping, and the square root of sum of squares (SRSS) of the hysteretic damping and the viscous damping of the supplemental oil devices. The calculation steps of the proposed CSM are explained in detail based on the equivalent single degree of freedom (ESDOF) system, and its accuracy was examined by comparison with time history analysis (THA) results. Two model steel buildings of 4 and 10 stories, uniformly equipped with oil dampers along the height, were subjected to six selected earthquake ground motions scaled to be compatible with Level-2 earthquakes, as defined in the Japanese Building Standard Law. The seismic performance of the buildings was estimated by the proposed CSM procedure and compared with the results of nonlinear THA in terms of the maximum story displacements and the shear forces. It was observed that the proposed CSM scheme provided a satisfactory accuracy to assess the maximum nonlinear response of steel buildings passively controlled with oil dampers.