I'm a machinist by trade.
On soft metals, especially aluminum, the ideal fluid is highly viscous, WD-40 and kerosene both work well if you don't have a purpose made fluid... you are more worried about galling than you are about lubricating the cut and drawing frictional heat away.
On hard metals, you'd want to use nothing less than one of the medium tap fluids such as tapmagic, or in some cases dark cutting oil. There's more friction/heat generated and you need a heavy oil that will not break down under the pressure, and will also stay in place during cutting.
On holes in stainless, nearly every machinist I've met, including myself, goes several thousandths over the recommended tap drill size to releive stress on the tap. It reduces the chance of breaking, and gives a little more chip clearance. In the end, you usually end up with a better hole even though there is less meat.