Rafael Benitez conceded that the referee was right to award Manchester United a penalty during Liverpool's 2-1 league loss.

Benitez has backtracked his earlier statement about Antonio Valencia diving after the winger was adjudged to have been fouled in the box by Javier Mascherano although the initial contact was made outside the box. Mascherano was booked for his troubles.

But Benitez later admitted to Sky Sports News that it was a penalty.

"It appears that it was inside so it was a penalty, and Carra was there so it was a yellow card," said Benitez.

The Liverpool manager also felt his side deserved to take a point from their trip to Old Trafford, but paid tribute to an impressive United display.

He said: "I think it was very tight. They didn't have too many chances, we didn't have too many.

"Between two top sides the difference is always little things and they were better at these things.

"It was a great goal (from Torres), a great header. But we conceded too early and in the second half you could see they are a good team, no doubt about this, but they didn't have too many options and it could have been a draw, with a little bit of luck."

With Liverpool suffering their tenth defeat of the campaign, Benitez admits his team now face an uphill battle to qualify for the Champions League next season.

"It will be difficult, but still we have to fight. There are a lot of points to play for so we have to keep going and see what happens in the next game.

"I think they (the fans) can see that the team today was solid again. It is not like we are not doing well, not creating chances or are too weak.

"It depends on the other teams too. We have to win the first one, see what the position is in the table and think about the next one. We have to take one game at a time."