The present invention is directed to a process for producing and separating oil. An aqueous fluid having an ionic content of at most 0.15 M and a total dissolved solids content of from 200 ppm to 10,000 ppm is introduced into an oil-bearing formation. Oil and water are produced from the formation subsequent to the introduction of the aqueous fluid into the formation. A demulsifier and a brine solution having a total dissolved solids content of greater than 10,000 ppm are mixed with the oil and water produced from the formation. Oil is then separated from the mixture of oil, water, demulsifier, and brine solution.