High quality neat oil with chlorine-free developed from hydro-cracked base-fluids for applications such as cutting oils for the small, high precision parts for the watch industry as well as the honing fluid for toughened steels and nickel alloys where high degree of finishing is required. Compliant with RoHS requirements, this light viscosity, highly transparent oil is blended with ester-based lubricity agents and inactive sulfur and can be used for both ferrous and non-ferrous materials.