An automatic transmission fluid works well. ATF is not as slippery as a motor oil so the clutch can be adjusted to a lighter "snap" and the action of the brake is improved. Usually a simple change to ATF makes a marked improvement without adjusting anything.
Even using motor oil, the clutch does not require a very firm snap to spin the diesel engine just fine. The clutch adjustment should be as loose as possible to lessen the drag from oil between the disks. It is not at all like the main clutch between the engine and transmission.