To move a photo to another album, follow these steps:
Click on the "Photos" tab.
Click on the album where the photo that you want to move is located.
Select the file that you want to move, click on the "Move to..." dropdown menu, and select the album you want to move the selected file to.
When you move a photo within the Photos module, it will affect the Storage module too. However, the Storage module works the same as Windows Explorer: you cannot have two files of the same name within one folder, so if you move a photo (file within the Storage module) to another album (folder within the Storage module) that already contains a file bearing the same name, the move will not be performed and you will be notified by an error message.