At one point this season, City had a seven-point lead over their Manchester rivals. But lead has vanished, and City now trail the champions by a point with 10 games to go.
City went into the day with a two-point lead over United, but that lead vanished as they lost 1-0 in Wales to Swansea City.
City have struggled away from home all season and should have gone one-nil down in the first-half after conceding a penalty. But Joe Hart saved well from Scott Sinclair to keep the leaders in the game. Brendan Rodgers’ side has been one of the bright spots it Premier League this season and got the goal their play deserved thanks to Luke Moore’s header with seven minutes left.
At Old Trafford Wayne Rooney scored both goals for Sir Alex Ferguson’s side, volleying them into the lead on 35 minutes before adding a second-half penalty shortly after the visitors lost Jonas Olsson to a second yellow card.
Rooney now has 26 goals on the season and is within eight goals of his best season, when he scored 34 goals during the 2009-2010 season.
In the day’s other game, Wigan battled to a 1-1 draw at Norwich, but it was not enough to lift them off the bottom of the Barclays Premier League.
Wes Hoolahan clipped in Simeon Jackson’s cross to put the Canaries in front after 10 minutes.
However, the Latics grew into the match and eventually netted a deserved equaliser through a well-taken finish by Victor Moses on 68 minutes.
With the draw, Wigan moved to within two points of safety.