Here are some options for O-ring grooving. The inserts are MGMN style which are available in a number of widths. Search on eBay for MGMN 150, 200, 300, 400, etc. They are metric in size, divide the number by 100 for the width in millimeters (200 = 2 mm). They are available in external and internal set ups.
These happen to be MGMN200 and MGMN300 bits on boring bars ($10 or less with 10 bits from China)
Insert is replaceable and double ended
External MGMN200/300 inserts. I wrote the English width on the tool holder for DRO purposes ($10 or less with 10 bits from China).
Also pictured are a number of Rovi solid carbide pre-ground boring bars for grooving. These are available from a number of sources (i.e. Micro 100, Rovi, etc.).
These work really well, much better than the MGMN bits, but they are more pricey (~$20 each).
Or, as mentioned above, you can use a boring bar and hand grind a cutter to the width you need.
Bruce