As a rule for any RWD Volvo I run 10W40. 10W40 is a nice safe oil I think, and unless you're getting a lot of leaking or you know the bearings are very worn, I wouldn't bother going up to a more viscous oil.
On a personal note, I really like
Brad Penn 10W40 and if you buy it by the box (12 quarts) it's about the same price as Penrite.