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A lubricant and coolant used in metalworking. It is an oil based fluid that is contained in a small steel oil can.
Purified water (2)
Cutting fluid (1)
Commonly found as random loot in toolboxes or in the open world.
The game script will scrap three existing units of cutting fluid in a player's inventory to generate the required steel, leaving the player with two less than what they began with. However, the extra oil is not used in the process.