We formulate a mathematical model for one dimensional flow with chemical reactions resulting from injection of air into a porous medium initially filled with gas, water and volatile oil. Our goal is to investigate the effect of water and steam on oil recovery, and we do so for a medium pressure air injection process. We show that, when the boiling point of the volatile oil is below or slightly above the boiling point of water, the hot steam region moves upstream of the medium temperature oxidation (MTO) wave (where oil vaporization and combustion occur), while the volatile oil and steam condense at the same location; it leads to considerable improvement of oil recovery by the MTO wave. Remarkably, the recovery curves (recovery fraction vs. time) depend weakly on the initial water and light oil saturations. If the volatile oil boiling point is much higher than the boiling point of water, the steam region moves downstream of the MTO wave. In this case the water effect on recovery is weaker and becomes negative for high water saturations. Numerical calculations suggest the existence of an oil boiling point at which a bifurcation occurs that separates solutions with the steam region upstream or downstream of the combustion zone. (C) 2014 Elsevier Ltd. All rights reserved.