Everton manager David Moyes felt his players were hard done by as they lost 2-0 to derby rivals Liverpool at Goodison Park.

Toffees defender Joseph Yobo had a game to forget as he first diverted a speculative Javier Mascherano shot past goalkeeper Tim Howard then failed to clear in the lead-up to Dirk Kuyt's clincher.

Everton had plenty of the ball but failed to find a way past Jose Reina, who produced a fine double save 20 minutes from time to keep out close-range efforts from Tim Cahill and Marouane Fellaini.

Moyes said: "I don't feel we came off the pitch losers. The players worked extremely hard and they I felt they deserved more than what they got in the end," he said.

"The deflected goal took the sting out of us. I don't know how many times Liverpool had been in our half up to that point but it wasn't many.

"But I thought the players reacted great. They kept going and I thought in the main we kept Liverpool quiet.

"The game was tight and we, in the main, were trying to set the tone and make it difficult for them.

"It is disappointing you don't get anything from that.

"I think the two saves by Reina [were crucial]. I felt maybe our luck would change in the second half and we would get the goal but maybe that double save just altered it a little bit.

"But up until it went to 2-0 I can't remember Liverpool having a chance apart from Emiliano Insua's first-half header.

"But in big games especially you hope you don't get situations where there are mistakes because it is hard enough to score a goal without making anything which leads to one."

On-loan Manchester City striker Jo, making his first start for more than a month, had the ball in the net twice in the first half but was flagged offside on both occasions.

Moyes had no issue with the decisions and was happy with the Brazilian's performance in the 65 minutes he was on before being replaced by Louis Saha.

"I thought Jo did really well and I also think the linesman got them (the offside decisions) both correct."

The defeat, which extends Everton's current run to one win in the last 11 matches, leaves the club three points outside the relegation zone.

Despite an improved performance against their near-neighbours Moyes knows his side have to improve.

"Overall I thought the players did a good job. I've got encouragement from today but it doesn't change our position," he added.