origin - Australia botanical name - Eucalyptus globulus extraction method - Steam Distillation Benefits of Eucalyptus Essential Oil: Colds and respiratory problems. Also, eucalyptus oil vapor appears to act as a decongestant when inhaled. It is a popular home remedy for colds and bronchitis. It may act as an expectorant for loosening phlegm and easing congestion. A number of cough medications includeeucalyptus oil, including Vicks VapoRub.