The job of a good
oil (or indeed any finish), is to protect the
wood from the two enemies: sun damage and drying out (cracking).
Paint is excellent at both of these jobs.
Oil is pretty rubbish at the first but very good at the second.
Having said that, the reason
Teak is used on
boats is because it has so much oil within it, it has very little tendency to dry out quickly enough to crack. More oil is always going to help it though, and will help with waterproofing too. Waterproofing is handy because it helps to prevent dirt building up in the outer fibres of the wood and thus means you don't have to clean it as often.
Cleaning (especially vigorously) takes away the sun-damaged fibres on the outside of the wood, revealing new wood underneath, which looks good but slowly removes the wood every time you do it.
So yes, any quality oil will help protect wood from cracking and lengthen its
service life, even up to and beyond the point where it looks like junk again. The oil is still doing its job. More oil added on will help.
Varnish and
polyurethane are finishes that sit on top of the wood, forming a (hopefully) impenetrable barrier between the wood and the
water. They are more or less successful in protecting from UV, but usually less. They don't move with the wood and so when the wood gets damp/dry and hot/cold they tend to release their grip. And then the
water gets in, as it always will. You will need to physically remove that protective surface, then reapply.