The reason is an "unacceptable risk that the companies contribute to serious violations of individuals' rights in war or conflict situations". The fund's decision is based on advice from the Norwegian ethics council.
The oil fund announced a week ago that it would sell its holdings in six companies, but which companies were involved could not be announced until the sales were completed.
The ethics council writes in its advice on Caterpillar that the company manufactures bulldozers that "are used by Israeli authorities for extensive illegal destruction of Palestinian property".
At the turn of the year, the oil fund according to E24 owned shares equivalent to 24 billion Swedish kronor in Caterpillar.
The oil fund has been in trouble this summer after the media revealed that the fund had, among other things, bought shares in the Israeli fighter jet company Bet Shemesh Engines.
The Norwegian giant fund has now sold its holdings in 17 different companies with ties to Israel in a few weeks.
