Carbon dioxide (CO2) miscible fracturing huff-and-puff technology now plays a pivotal role in enhancing crude oil recovery rates, particularly in reservoirs with challenging physical properties, strong water sensitivity, high injection pressure, and complex water-injection dynamics. In this study, the oil-increasing mechanism and huff-and-puff effect of CO2 miscible fracturing fluid are investigated through a comprehensive experimental approach. Specifically, experiments on PVT gas injection expansion, minimum miscible pressure, and CO2 miscible fracturing fluid huff and puff are conducted on the G fault block reservoir of the J Oilfield. The experimental findings demonstrate that injecting CO2 into reservoirs leads to an expansion in oil volume, a reduction in viscosity, and an increase in saturation pressure. Crude oil extraction is further enhanced by the addition of solubilizers and viscosity reducers. The use of solubilizers not only increases oil recovery rates but also reduces the minimum miscible pressure required for effective CO2 dispersion. We also found that shut-in times, permeability, and the huff-and-puff method used all have considerable impacts on huff-and-puff recovery rates. This study offers valuable technical insights, supporting the application of CO2 miscible fracturing huff-and-puff technology to enhance oil recovery rates in low-permeability reservoirs.