Depending on the type of system you are focusing on the 'Seal Oil' is typically the media of your system which is being 'sealed' against foreign contaminants. The 'lube oil' is typically a mineral or synthetic based oil or grease used to reduce the friction between metal-to-metal contact in your system as well as the contact between the rubber lip of the seal and the shaft or piston.
For more technical information regarding seals visit www.colonialseal.com.
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