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Grease (not oil) the barrel where it is supposed to pivot smoothly in the lever to avoid bending the cable. And while you are at it you might as well grease the pivot too.
And the owners manual states oil...grease certainly make more sense.
When I bought my first airhead back a long time ago, I greased the barrel of the clutch lever a couple of times only to find out the grease washed off or attracted grit from the road. I should have written I have never greased since then, instead of never greasing.
I have 37 years and 248K miles on my bike still running and using the stock lever. I understand the point of greasing things but sometimes, as I found it can be counter productive in some cases.
Take it or leave it, that is my experience, Cheers, St.