Monte Carlo techniques have been used to investigate the effects of magnetostatic and repulsive particle interactions on the formation of agglomerates in a magnetic fluid. The dependence on particle size and applied field of the form of the agglomerates was studied using a spatial distribution function which allows a quantitative distinction to be made between clusters and anisotropic chain structures. Magnetization curves have been calculated for magnetic particle sizes varying from 5 to 15 nm with and without magnetostatic interactions. For the larger particle sizes, it was found that the initial susceptibility is reduced in the presence of interactions. This is associated with the presence of pronounced agglomeration in zero field, where open clusters are formed. As the applied field is increased the clusters break up to form long chains aligned in the field direction. At intermediate particle sizes, there is evidence of magnetic field induced agglomeration leading to the formation of dimers and trimers preferentially aligned in the field direction. The smallest particle size showed little evidence of ordering even in strong applied fields, since thermal disordering dominates the situation.