Here is the white lithium grease that is applied to the threads of the punch housings when manufactured:

Be sure to clean the male and female threads thoroughly to remove any dirty grease and particles. Acetone works very well on cleaning or mineral spirits that cut oil. Apply a small amount of the white lithium grease on the male thread at the end of the top housing. This will evenly distribute the grease onto the female thread. Lithium grease actually adds a little friction, which is what you want. If you use a thin oil, the thread can screw too fast and lock up at the end of the thread.