The present invention provides a cold extrusion oil, which comprises, by weight, 75-88 parts of base oil, 2-5 parts of sulfurized olefin cottonseed oil, 2-5 parts of sulfur powder, 3-6 parts of zinc dialkyldithiophosphate, 0.05-0.15 part of benzotriazole, and 0.1-0.3 part of 12-alkenyl succinic acid. The invention further provides a preparation method of the cold extrusion oil. According to the present invention, the mineral base oil is directly vulcanized with the monomer S to improve the extreme pressure performance of the oil product, such that the environmental protection problem caused bythe chlorinated paraffin adding for improving the extreme pressure performance of the oil product in the metal processing lubricating oil in the prior art is avoided; by introducing sulfurized olefincottonseed oil and zinc dialkyldithiophosphate into the formula, the smoothness of the processed metal surface can be ensured; and the cold extrusion oil composition can be used for the cold extrusion processing process of stainless steel pipe members, and can improve the service life of stainless steel products and improve the surface quality of pipe members.