Skipper Stephen Fleming believes New Zealand were in the running for almost all of their match against Australia, but still allowed their arch-rivals to complete a 96-run win.
Fleming bemoaned New Zealand's inability to build partnerships
Kiwi hopes were high after pace bowler Shane Bond reduced Australia to 84 for seven at one point in the Super Six match.
But the world champions rallied to 208 for nine and Brett Lee's five-wicket haul saw the Black Caps bowled out for just 112 in the 31st over.
"There were some good aspects," Fleming maintained.
"We fought pretty well for 80% of the game but in the other 20% we lost it.
"We were feeling pretty good about ourselves [with Australia 84 for seven] but we've been there before and we just ran out of juice."
Fleming bemoaned his side's failure to put together a significant partnership - his 33-run stand with Chris Cairns for the fourth wicket was the highest.
"Getting a partnership early is the best way to knock off even a small total," he said.
"The pitch was slow but it didn't move about and the pace was adequate for batting later."
New Zealand's main hope of a spot in the semi-finals rests on beating India in their final Super Six match on Friday.
However, they could sneak through if other results go their way.
The Kiwis can take heart from their recent home one-day series against India, which they won 5-2.
But India have become one of the form teams of the tournament, booking a semi-final place with Monday's resounding win over Sri Lanka.
"We played well at home against them and hopefully we can repeat that," said Fleming.