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I had the same problem on the same car. I narrowed it down to the O2 sensor. This was a while back so don't ask me to explain how I came to that conclusion.
The things is, I had a very difficult time finding the correct sensor for replacement. Even the local Volvo dealer didn't give me the right part#! I had to go straight to NGK and talk to a tech rep to find out what I needed. He said that many of the catalogs out there were actually in error for what was listed.
Of course they can't sell you one directly from the factory but they can tell you where to buy the right one.
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