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Personal preference. Oil is easier to maintain and does not have to be stripped or sanded. Varnish is more luxurious looking. Due to the nature of teak I personally do not think varnish sticks to it as well as other woods.
I wonder if one used a different oil if it would give it more of the varnish look when several coats are applied and built up.
From the factory, teak was oiled, mahogany was varnished.
Teak has a natural oil in it so it may not hold varnish as well.
Personally I dislike varnish since it is so high maintenance, application takes a lot of effort and can only be applied under specific temperature/humidity conditions.
If you are in a heavily sunny climate, consider covering anything varnished. Will help it last longer.
