In this study, the potential of cyclic CO₂ injection process was examined for CO₂ storage and enhanced oil recovery. For this purpose, a detailed phase behavior study on the light crude oil–CO₂ and brine–CO₂ systems was conducted. CO₂ solubility in the oil and brine samples as well as oil swelling factor as a result of CO₂ dissolution were experimentally measured. The equilibrium interfacial tension of the crude oil–CO₂ system was also determined by applying the axisymmetric drop shape analysis (ADSA) technique for the pendant drop case. Furthermore, the minimum miscibility pressure (MMP) of CO₂ with crude oil was calculated by means of vanishing interfacial tension (VIT) technique and found to be MMP = 9.18 MPa. Thereafter, series of cyclic CO₂ injection tests were designed and carried out at constant temperature of T = 30 °C and various operating pressures in the range of P_op = 5.38–10.34 MPa to cover immiscible and miscible conditions. The results showed that 40–50% of the injected CO₂ was stored in the porous medium mainly through residual and solubility trappings’ mechanisms. It was found that during immiscible injection condition (i.e., P_op < MMP), higher amount of CO₂ can be stored in the porous medium at higher operating pressures. The results also revealed that optimum potential of CO₂ storage is almost at operating pressures near the MMP, while beyond that pressure, the CO₂ storage capacity was not substantially increased. From the enhanced oil recovery point of view, the oil recovery factor was significantly improved when operating pressure increased and reached its maximum value at miscible condition (i.e., P_op ⩾ MMP). During the immiscible injection scenario, mechanisms involved in oil production were mainly oil swelling and reduction of interfacial tension. However, the light component extraction was the major production mechanism contributing to the oil recovery during miscible injection process.