Fractional distillation is a method used to separate components of crude oil by taking advantage of differences in their boiling points. It involves heating a mixture in a distillation column, partially condensing vapors to allow for countercurrent contact between ascending vapors and descending liquids, enriching each phase and driving the mixture toward equilibrium at each stage. This allows for high purity separation of components like gasoline, diesel, and lubricating oil from crude oil. It is widely applied in industries like oil refining due to being able to separate close-boiling mixtures.