Some materials cut just fine dry, such as cast iron and some brasses and bronze alloys. Others benefit from coolant or oil, and so will your tooling. It also can allow a faster surface speed, which in turn can give you a better surface finish. If you mean cutting oil, some choose simply to brush it on as the cut progresses while others prefer to build some sort of drip oiler. In the old days, before soluble oils became practical, some machines with recirculating systems were full of dark, smelly, sulphurized oils. Even now, pipe threaders for field use come equipped with an oil system.
Dull your tools? No, preserve them if anything. Will not dull them.