Water may be removed from a biofuel or biofuel intermediate by using a demulsifier. The demulsifier includes the product of oxyalkylating a resin prepared from a formulation including a phenol and a compound selected from the group consisting of an aldehyde, a diamine a polyamine and mixtures thereof. The demulsifier may also be used with admixtures of biofuels, biofuel intermediates, or biofuel feedstocks with conventional hydrocarbons.