We show that a large set of nanofluid thermal conductivity data falls within the upper and lower Maxwell bounds for homogeneous systems. This indicates that the thermal conductivity of nanofluids is largely dependent on whether the nanoparticles stay dispersed in the base fluid, form large aggregates, or assume a percolating fractal configuration. The experimental data, which are strikingly analogous to those in most solid composites and liquid mixtures, provide strong evidence for the classical nature of thermal conduction in nanofluid