The invention relates to a steel pipe drawing emulsified oil with ultrahigh lubricating property and a preparation method thereof. The method comprises the following steps: palm oil and machine oil N68 are first poured into a reaction kettle at the rotational speed of 50 to 120 rotations per minutes, heated and agitated; when temperature reaches 60 DEG C to 80 DEG C, oil-soluble nano Fe3O4 (2nm to50nm), nitrogen-containing borate, zinc dialkylphosphorodithiloate, butyl stearate, C8-C10 mixed alcohol, sodium dodecyl benzene sulfonate and dimercaptothiodiazole are then sequentially added into the reaction kettle, and agitation is continued for 60 to 100 minutes while temperature is kept; afterwards, when temperature is decreased to 70 DEG C, sorbitan monooleate Span 80, nonyl phenol polyoxyethylene ether, triethanolamine, methylsilicone oil and quintozene are added, the rotational speed of an agitator is adjusted to 30 rotations per minutes and agitation is kept for 30 to 60 minutes, heating is then stopped, agitation is continued until room temperature is reached, and thereby the welded pipe drawing emulsified oil which is yellowish-brown, transparent and uniform is obtained. The product disclosed by the invention is easy to degrade, the anticorrosive period is longer, the annealing detergency is better, and moreover, environment pollution can be reduced.