(CNN) -- Liverpool's Premier League title dreams appear all but over after they were held to a 1-1 home draw by Manchester City on Sunday.
Dirk Kuyt rescued a draw for Liverpool on Sunday, but they now trail Manchester United by seven points.
Starting the match eight points behind Manchester United, who beat Blackburn 2-1 on Saturday, the single point leaves second-placed Liverpool with a seven-point deficit to make up with just 12 matches remaining.
Mega-rich City continue to mystify with their inconsistent performances, but their display at Anfield was full of fight and determination and they went close to taking a 30th-minute lead when Stephen Ireland's shot was well saved by goalkeeper Pepe Reina.
However, City did take the lead four minutes after the break when Vincent Kompany turned the ball into Craig Bellamy's path, and the former Liverpool striker found the corner of the net with a drive that deflected off Alvaro Arbeloa.
But Liverpool have made a habit of coming back into games this season, and they did so again in the 78th minute when Yossi Benayoun broke on the left and his cross was met by Dirk Kuyt, via a mis-kick from Fernando Torres.
It was Dutchman Kuyt's ninth goal of the season and preserved Liverpool's 14-month unbeaten home league record.
However, with Manchester United in unstoppable form, manager Rafael Benitez will know it was two points dropped rather than a point gained in pursuit of their first title since 1990.
Elsewhere in the Premier League, Fulham moved up to eighth in the table as goals from Bobby Zamora and Andy Johnson gave them a 2-0 home win over rock-bottom West Bromwich Albion, who also missed a late penalty through Roman Bednar.
Meanwhile, Everton remain four points behind Arsenal in sixth position after a 0-0 draw at Newcastle, who had Kevin Nolan sent off in the first half.