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Since cutting fluid is a junk item that drops in your inventory, it contains 1 Steel. To produce cutting fluid you need 3 Steel and the last place it's going to look for ingredients is in your inventory.
I bet you had 8 Steel available for crafting ... After you made the first two (consuming 6 Steel) you only had 2 Steel left, so when you made the third cutting fluid it used 1 Steel from the cutting fluid you just made, thus creating it and removing the other cutting fluid and you stopped at producing 2 cutting fluid.
Hope that makes sense but before you confirm the crafting, check to see what ingredients it's going to use for crafting and you should see "cutting fluid" under the Steel ingredient line.
Or (even though this method takes FOREVER if you can make a lot of cutting fluid) create one, exit the chem-station, enter it again and make another one.