Lavender oil is an essential oil obtained by distillation from the flower spikes of certain species of lavender . Two forms are distinguished, lavender flower oil , a colorless oil, insoluble in water, having a density of g/mL; and lavender spike oil , a distillate from the herb Lavandula latifolia , having density g/mL. Like all essential oils, it is not a pure compound ; it is a complex mixture of naturally occurring phytochemicals , including linalool and linalyl acetate . Kashmir Lavender oil is famous for being produced from lavender at the foothills of the Himalayas. [ citation needed ] As of 2011, the biggest lavender oil producer in the world is Bulgaria .