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In most cases, it's recommended to fill the 2006 Ford E350 with a 5.4 L engine with 7 quarts of A5W-20 full synthetic or synthetic blend oil. However, you can also opt for conventional oil if you prefer a cheaper option or have some on hand. The trade-off is that you might not experience the same performance and fuel efficiency benefits, and you'll need to change the oil more frequently, about every 5,000 miles instead of the 7,500 miles interval for synthetic oil. If you DIY the oil change, the cost for oil and a new filter should come in under $50.
In a 2006 Ford E350 with a 5.4-liter engine, you should use 7 quarts of oil.